Thomasville won't raise vehicle taxes

While High Point officials continue to mull a proposed vehicle tax increase, leaders in Thomasville say there will be no rate hike in their city.

BY NASH DUNNThe Dispatch

While High Point officials continue to mull a proposed vehicle tax increase, leaders in Thomasville say there will be no rate hike in their city.It's not a matter of the Thomasville City Council's pleasure, but more a matter of what the city can and cannot impose, according to state law.Thomasville levies a $5 vehicle tax on cars and vehicles registered within the corporate limits of the city, which generates about $85,000 to $90,000 for the city’s general fund annually, said Thomasville City Manager Kelly Craver.Municipalities can levy privilege taxes of up to $5 per vehicle. They can also impose an additional $5 tax if the city or town operates a public transportation system, according to North Carolina General Statute 29-70.The General Assembly has approved some municipalities to impose higher privilege taxes, up to $30 per vehicle. Legislators approved the higher increases contingent that the revenue gained would be used for transportation-related purposes.High Point, for instance, is requesting an increase of $15, from $5 to $20, per vehicle. If approved, $15 of the tax could be used for any lawful purpose, and the remaining $5 could be used exclusively for transportation and sidewalks, according to House Bill 309.The General Assembly has approved the higher vehicle tax for larger cities with mass transit systems, including Raleigh ($25), Winston-Salem ($20) and Charlotte ($20).Because Thomasville does not have a mass transit system, it can't make a similar increase, Craver said."We cannot do it by general statute," he said.Craver clarified that point to city council members recently after Thomasville City Councilman Neil Grimes raised the issue during a transportation committee meeting.The General Assembly has yet to approve the special legislation for High Point. The bill is in committees. High Point City Council would also have to approve the change for it to take effect.Nash Dunn can be reached at 249-3981, ext. 227, or at nash.dunn@the-dispatch.com.